Solar power moves forward in San Francisco

The San Francisco Board of Supervisors on July 13 removed a major stumbling block to solar power.

Prop H, passed by voters in 2001, authorized the city to issue bonds to fund renewable-energy and energy-conservation projects. The city's Public Utilities Commission (PUC) decided to back the revenue bonds for the solar projects with the money the Hetch Hetchy water system receives from selling power to city departments. The rates paid by these departments, however, have been set by the Board of Supervisors below market rate (and often below cost). With rates this low and subject to change at the whim of a political body, prospective bondholders would be reluctant to buy the bonds.

The new ordinance, introduced by Supervisor Chris Daly and written in collaboration with PUC member (and former Sierra Club president) Adam Werbach, will allow Hetch Hetchy to set rates based on "cost of service", as it currently does for water rates. It will now be able to contract with city departments for the purchase of electricity, ensuring a dependable source of revenue.

Now the PUC can move forward with its business plan to issue the solar bonds, hopefully by the end of the year.

Many Sierra Club volunteers have written to the PUC and the mayor urging them to make progress on the solar bonds. Your efforts have made a difference.

Also on July 13, the PUC agreed to issue Requests for Proposals to put ten 2.5-KW solar installations on city school buildings, as well as for a 300-KW installation for the Norcal recycling facility at Pier 96.

We hope that issuance of the solar bonds will fund many more such projects in the not-too-distant future.

Doug Beach, acting chair, Chapter Energy Committee